Indian state-backed refinery HPCL-Mittal Energy Ltd (HMEL) has announced that it has suspended purchases of Russian crude oil following the imposition of sanctions by US President Donald Trump on two major Russian oil companies.
Tensions had arisen between Washington and New Delhi last August after President Trump increased import duties on India to 50%. US officials had accused India of indirectly supporting Russia’s war in Ukraine by purchasing discounted oil from Moscow.
President Trump has claimed that Indian Prime Minister Narendra Modi agreed to reduce his country’s Russian oil imports under the terms of a potential US trade deal. However, the Indian government has not confirmed this claim.
In a recently issued statement, HMEL, a joint venture between steel magnate Lakshmi Niwas Mittal and state-owned Hindustan Petroleum Corporation Ltd (HPCL), said, “A decision has been taken to temporarily suspend further purchases of Russian crude oil.” The company stated that this decision was made following the announcement of new sanctions on oil imports from Russia by the United States, the European Union (EU), and the UK.
The statement said, “HMEL’s commercial activity is fully aligned with the Indian government’s policy and national energy security.” Meanwhile, Reliance Industries, another major Indian buyer of Russian oil, has also stated that it is assessing the impact of the fresh sanctions from Washington and the EU. A company spokesperson said, “We will fully comply with the EU’s directives on imports of refined petroleum products into Europe and the guidelines of the Indian government.”
The EU has already announced a complete ban on imports of liquefied natural gas (LNG) from Russia by the end of 2026. Reliance has expressed confidence that through its ‘tested and diversified crude oil sourcing strategy,’ it will meet the needs of both domestic and export markets and maintain stable refinery operations.
According to an investigative report published by the London-based Financial Times on Wednesday, HMEL had previously received shipments of Russian oil that used some vessels which were later listed on the US and EU sanctions lists. However, the company clarified that it did not charter those ships itself and had limited visibility into the entire shipping chain. HMEL further clarified, “The vessels delivering crude oil to India were not subject to US sanctions at the time of delivery.”
India, one of the world’s largest crude oil importers, sources over 85% of its total oil requirement from foreign sources. Traditionally reliant on Middle Eastern producers, India had been purchasing discounted crude oil from Moscow since 2022, amidst sanctions imposed on Russia by Western nations.
